Do I have to live in my home to apply for a reverse mortgage? Can I get a reverse mortgage on my other home? I want to move with a reverse mortgage can I?
When you apply for a reverse mortgage you must live in the home as your main residence. A main residence is a place where you live for over 6 months during the year. You must provide proof that the home is your main residence prior to being approved for a reverse mortgage. If, at any time during the reverse mortgage contract, you leave full time residence of that home you will be required to pay the loan in full. This includes extended stays at nursing homes or recovery facilities. Depending on the contract you sign, stays at a nursing home in excess of 9 months can be considered a “move”.
Can I get a reverse mortgage on my other home?
The reverse mortgage program is only for a primary residence. Vacation homes, cottages or other types of secondary living places do not qualify for a reverse mortgage. This law has been placed into effect to prevent corporations from obtaining reverse mortgages on commercial properties.
I want to move with a reverse mortgage, can I?
When you have a reverse mortgage you can sell your home or move at any time. In the event that you sell or move residence you will have to repay all the money that has been lent to you in full. Selling or moving constitutes a break in contract and makes the loan, with interest, payable in full. Some reverse mortgage contracts have a clause that charges a penalty if this type of breech comes within an initial time frame. If you are planning to sell or move, make sure you know the conditions of your reverse mortgage first.
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